| The matter is under the income tax department's consideration along with a host of other proposals to raise the number of taxpayers in the over-Rs 10 lakh bracket by 50 per cent from the present 80,000-85,000. The issue was discussed at a two-day conference of chief income tax commissioners which concluded today. |
| The department's south zone has proposed that a special scheme be launched for people who have made large gains from the recent stock "boom" but have not declared their income adequately. |
| It also proposed that transactions in immovable property be monitored and the law amended to make sub-registrars liable to deducting up to 1 per cent of the value of a transaction as tax. |
| Better co-ordination with other tax collection wings like the Central Board of Excise and Customs and state sales tax departments to get a list of large tax-payers is also under consideration. |
| Other proposals which came up for discussion included tabs on luxury excursions and high-value purchases of items like branded suits, watches, pens and paintings. |
| Officials said the tax department would be able to process data on high-value transactions after August 31, when it receives the first set of annual information returns. |
| As per the plan on the use of information on high-value transactions, the data collected will be tallied with the list of persons who have not filed tax returns, and "polite letters" will be issued to them. |
| The system will also help the tax department identify people whose cases will be taken up for scrutiny. These cases will also pertain to those whose transactions during a financial year are more than their income in the preceding three years. |
| This will be based on their tax returns. Besides, data on the basis of tax deducted at source will also be used to keep tabs on peoples' expenditure. |
Top Section
Explore Business Standard